# You wont beleave what i heard



## Doogie (Oct 15, 2007)

being a cigar rep i wasMaking my rounds through RI and Conn this week and this is what i heard.
some of my retailers are saying that they have customers getting tax bills from RI ans Conn for cigars they are purchasing online. This wasn't just in one shop. i heard this from 4 different retailrs. can anyone confirm this?


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## Legion (Jul 9, 2006)

Thats sounds crazy unless it was through purchases where there state requires tax and the online retailer didnt collect


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## Snake Hips (May 30, 2008)

I don't know what's so crazy about this. New Jersey's _been_ doing it, as well as New York and a few others like Oregon I think. When you buy cigars online, you owe the state taxes on them. These states are just trying to collect it. It won't be long before all of the states start doing it.


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## BlueHavanaII (Feb 2, 2007)

Snake Hips said:


> I don't know what's so crazy about this. New Jersey's _been_ doing it, as well as New York and a few others like Oregon I think. When you buy cigars online, you owe the state taxes on them. These states are just trying to collect it. It won't be long before all of the states start doing it.


The Cigars B&M industry will be hard pressed to survive if this doesn't happen nationwide!


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## Snake Hips (May 30, 2008)

BlueHavanaII said:


> The Cigars B&M industry will be hard pressed to survive if this doesn't happen nationwide!


Indeed! I actually agree with it, because it gives the B&Ms a fighting chance.


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## Doogie (Oct 15, 2007)

I live in NY and no one that i know has gotten a tax bill. just checking to see if this is true.



Snake Hips said:


> I don't know what's so crazy about this. New Jersey's _been_ doing it, as well as New York and a few others like Oregon I think. When you buy cigars online, you owe the state taxes on them. These states are just trying to collect it. It won't be long before all of the states start doing it.


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## BlueHavanaII (Feb 2, 2007)

Doogie said:


> I live in NY and no one that i know has gotten a tax bill. just checking to see if this is true.


I know for a fact that New Jersey does this. It happened to one of my customers!


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## SixPackSunday (Dec 25, 2008)

i have a friend that this happened to, but not sure what state. 

but yea, its legit and states have every right. i cant say i'm thrilled about it, but also dont blame them. if the b&m's have to pay it, so should the online retailers.


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## Blindjimme (Feb 13, 2009)

On tha CA state tax forms they ask if you have any online purchases and you are expected to pay taxes on them. I haven't heard of any type of follow up or enforcement though. It is going to happen sooner than later.

JB


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## Snake Hips (May 30, 2008)

Doogie said:


> I live in NY and no one that i know has gotten a tax bill. just checking to see if this is true.


I may be mistaken about New York, but it is true - states are starting to get on the ball about this. They're collecting what's owed them, nothing wrong with or surprising about that, really.


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## strider72 (Jan 25, 2009)

Only two things you can be sure of... death and taxes.


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## tx_tuff (Jun 16, 2007)

I'm glad I live in Texas, not because they don't do this, but because they don't tax the hell out of us on cigars! I can get almost the same prices at my B&M as I can online (unless its some crazy deal). If more states worked like that then more would buy from B&Ms and the states would by default get more money from less taxes. But that will never happen!


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## nativetexan_1 (Jan 1, 2008)

I wish somebody would post a copy of one of these "tax bills".


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## stbdtack (Jun 2, 2008)

. . .so when "all" the States are doing this we will purchase from Pennsylvania (unless they stupidly pass a tax) or Florida (where there's never likely to be one). Other on-line retailers will either die or move to Florida. . .


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## Andy (Mar 23, 2008)

Its tax this tax that I`am so sick of taxes


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## Snake Hips (May 30, 2008)

stbdtack said:


> . . .so when "all" the States are doing this we will purchase from Pennsylvania (unless they stupidly pass a tax) or Florida (where there's never likely to be one). Other on-line retailers will either die or move to Florida. . .


No, not quite. Doesn't matter where you purchase from, you owe the taxes. New Jersey, Connecticut, et al are sending tax bills for cigars bought in states like Pennsylavania and Florida. The taxes in the states you're buying from has nothing to do with it, you don't owe those states any money. That's why places like Cigars International don't charge you any tax unless you live in the state they're based in.


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## Jonesee (Dec 30, 2005)

stbdtack said:


> . . .so when "all" the States are doing this we will purchase from Pennsylvania (unless they stupidly pass a tax) or Florida (where there's never likely to be one). Other on-line retailers will either die or move to Florida. . .


I don't believe Florida has an additional tax on cigars, but the basic sales tax applies. I live in Florida and pay taxes everytime I cigars online form a Florida-based retailer.

Additionally, I read an article that Florida is looking for a way to enforce sales tax collection on all online purchases. Whether the vendors is based in Florida or not.


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## BlueHavanaII (Feb 2, 2007)

nativetexan_1 said:


> I wish somebody would post a copy of one of these "tax bills".


Here's what one of my customers received:

_Dear Taxpayer,

The Federal Government requires any entity or persons shipping cigarettes or tobacco products in interstate commerce to file a monthly report of all shipments to the receiving state's tax administrator. Information received by the State of New Jersey indicates that you are in receipt of untaxed cigars from Blue Havana II Cigars and Gifts.

New Jersey Statutes Annotated, N.J.S.A. 54:40B-1 et. seq. (Tobacco Product Tax) levies a 30% tax on every tobacco product and N.J.S.A 54:32B-1 et. seq. (Sales and Use Tax) levies a tax of 7% on the purchase price including the 30% tax.

The New Jersey Division of Taxation has determined that you are liable for the following tax amount based on the purchase listed below:

Date 4/30/2007
Description: Cigars $90.00
Tobacco product tax @ 30% $27.00
Amount subject to sales tax @ 7% $117.00

Tax Due $27.00
$ 8.19
Total Taxes to be remitted by the above named purchaser: $35.19

Please make your remittance payable to "State of New Jersey" and mail in the envelope provided along with a copy of this letter within (30) days of the date hereof. Failure to respond will result in the assessment of penalties and interest as provided by New Jersey statute.

Very truly yours,
Audit Services Branch
[Name], Technician, MIS
[Phone number]
Cigarette & Tobacco Products Tax_


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## XTRazzer (Dec 20, 2008)

Ohio has done this as well. A friend was getting tobacco out of state because of the lower cost, then Ohio sent him a tax bill for nearly $1,000 due immediately. Worst part was the current tax rate was retroactively applied over the past two or so years.

I'm still not sure how the heck this happened. Only thing I can figure is it was a regular credit card purchase and somewhere somebody caught on?


Ad Edit: Now I see how it happened ... regular business reports ... go figure


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## oceanelect4 (May 5, 2007)

good god enough with all these taxes god help us all


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## royhubbs (Feb 10, 2009)

Luckily, for the the moment the state of NH doesn't have a cigar tax.


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## Acesfull (Dec 9, 2007)

Ohio has done this with cigarette but not cigars... YET

*EDIT* Saw XT's post... was it Cigars, Pipe or cigarette tobacco? I know a few people got hammered with cigarette taxes.


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## XTRazzer (Dec 20, 2008)

Acesfull said:


> Ohio has done this with cigarette but not cigars... YET
> 
> *EDIT* Saw XT's post... was it Cigars, Pipe or cigarette tobacco? I know a few people got hammered with cigarette taxes.


Cigarettes from a store in Kentucky that were being shipped to a residence. Sorry I forgot to put that in the post earlier.


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## strider72 (Jan 25, 2009)

oceanelect4 said:


> good god enough with all these taxes god help us all


 Thank the people of questionable intelligence who elected a partry into power whose StandardOperatingProcedure is tax the hell out of everything you got and use.


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## Snake Hips (May 30, 2008)

strider72 said:


> Thank the people of questionable intelligence who elected a partry into power whose StandardOperatingProcedure is tax the hell out of everything you got and use.


Aye. They go "I thought he wasn't going to raise taxes!" Come on, Ray Charles saw that coming...and he's dead...


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## Buddha024 (Jul 31, 2008)

strider72 said:


> Thank the people of questionable intelligence who elected a partry into power whose StandardOperatingProcedure is tax the hell out of everything you got and use.


From someone with "questionable intelligence"....you're welcome.


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## strider72 (Jan 25, 2009)

Buddha024 said:


> From someone with "questionable intelligence"....you're welcome.


My bad... should have said "Don't thank"...


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## Buddha024 (Jul 31, 2008)

strider72 said:


> My bad... should have said "Don't thank"...


That's your reply? I guess etiquette doesn't apply in the Legislation Forum, huh?


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## strider72 (Jan 25, 2009)

I thought I was being fairly nice on the subject, there are plenty of more colorful metaphors and descriptions I could use.


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## Itsme-Speedy-G (Aug 20, 2007)

born free, taxed to death


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## Doogie (Oct 15, 2007)

now i know why Cigar International's daily deals have been so good lately. buy now and get a tax bill from your state later.


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## Itsme-Speedy-G (Aug 20, 2007)

I think it is called a use tax 

california doesn't have yet, yet


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## BlueHavanaII (Feb 2, 2007)

Itsme-Speedy-G said:


> I think it is called a use tax
> 
> california doesn't have yet, yet


It's actually called an OTP (Other Tobacco Products Tax). Here's a little info from Calif Tax Code...

_30187. Every consumer or user subject to the tax resulting from a
distribution of cigarettes or tobacco products within the meaning of
subdivision (b) of Section 30008 from whom the tax has not been
collected under Section 30108 shall, on or before the last day of the
month following the end of the quarter, file with the board a report
of the amount of cigarettes or tobacco products received by him or
her in the preceding calendar &#8230;

30008. "Distribution" includes:
(b) The use or consumption of untaxed cigarettes or tobacco
products in this state._​


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## EvoFX (Nov 11, 2008)

i am not sure if this has to do with the increase in tax. but we were at a cigar shop. and the lady was telling us about the 7oz pipe tobacco priced at 7.99 will soon be priced around 20.00. does this have anything to do with the taxes? it does seem like a big jump. i am located in Idaho btw


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## Snake Hips (May 30, 2008)

EvoFX said:


> i am not sure if this has to do with the increase in tax. but we were at a cigar shop. and the lady was telling us about the 7oz pipe tobacco priced at 7.99 will soon be priced around 20.00. does this have anything to do with the taxes? it does seem like a big jump. i am located in Idaho btw


It has something to do with the tax, but it shouldn't be that steep. I don't know what that's about. The only thing with that kind of hike is RYO, which pipe tobacco is not.


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